UK is willing to pursue Brexit scheme for financial sector preferred by the City of London, but it has instantly faced opposition from the EU, two officials said today.
It is awaited that Britain will message in the near future that it seeks a reciprocal recognition system for regulation of financial services in post-Brexit time, in an attempt to retain access for the City of London to the Union’s markets, they also said.
Brexit is a bit over a year away, but a lot of banks have started taking actions to shift certain operations to other countries. London banks, dissatisfied with UK government’s attitude to financial sector protection, developed their own plan aimed at securing the way to the EU market by the country’s promise to adhere to global standards.
Brussels though has responded with a “no” to the offer, that is to say London bankers need to refer to the equivalence system for regulation. There’s a legal opportunity for non-EU countries to obtain access to the bloc’s market in certain situations.
Along with that access is irregular and at any moment can be blocked. The government of the UK said it preferred reciprocal recognition scheme as it would keep the door to the single market for British companies open and allow some flexibility from Union’s regulations.